Do I Qualify?

WHY SELL?

DO I QUALIFY?

HOW MUCH CAN I GET?

SELECTING AN ADVISOR

SALES PROCESS

 

Do I Qualify for a Life Settlement?

The life settlement option – in which an individual sells his or her life insurance policy to a third-party investor for immediate cash payment – is gaining more awareness in the U.S. As a growing number of American seniors learn about this option for a life insurance policy they no longer need or can afford, they’re concluding that it provides a way to monetize the value of the policy as an alternative to lapsing or surrendering the policy back to the insurance company.
 
If this potential financial strategy sounds appealing to you, the next step is to determine whether you may qualify for a life settlement transaction. In general, the following qualification criteria applies:
 

Age and health status of insured:

Seniors who are age 65 years or older. Younger insureds may qualify, depending on certain medical conditions.
 

Type of insurance policy:

LISA members can help you with every type of insurance policy, including term insurance.  However, the majority of policies sold in the secondary market for life insurance are universal life insurance policies.
 

The life insurance policy premiums:

The amount of the premium payments to keep the policy in-force will also play a role in the offer amount.
 

Life insurance policy death benefit (face value):

Life insurance policies with death benefits of more than $100,000 are most desirable. However, some smaller policies can be sold.
 

Consumer Tips:

Policies may be owned individually or through a corporation, foundation, trust, non-profit organization or business. It is also very important that all beneficiaries understand the process, agree to the sale and are actively involved in the sales process.
 
The age and health status of the insured must be considered. Seniors who are 65 years or older, and younger insureds may qualify, depending on certain medical conditions.
 

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